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need some thoughts on a house
Posted: 16 Oct 2021, 06:57
by zim
a housing opportunity has come into my radar but i'm not sure if i should pursue it, need some input, getting different opinions from friends
house is $289,000, offer would be $275,000, maybe 265, with 10% down (person advising me thinks this would work). the house has two rental units in the basement, each would go for a minimum of $500 a month. my monthly costs (taxes, insurance, utilities) are estimated to be about 900ish a month and mortgage around 1200.
assuming the units stay rented out then my typical costs would hover between 900 and 1000. i also know that it would be work and what not to maintain the units and obvious house maintenance/renovations when they pop up.
is this something i should bother with? the price of the house is high but if i factor in the potential rent from tenants then it would cost me less than say a 210k house that i'm paying mortgage+everything else for
Re: need some thoughts on a house
Posted: 16 Oct 2021, 07:38
by jawn galliano
zim please i am begging you: do not become a landlord
you will probably hate it and even if you don't, it will inevitably make you worse off as a person
if you want to own, find a single unit that you can work into your budget
Re: need some thoughts on a house
Posted: 16 Oct 2021, 07:40
by Noyka
Yeah renters and depending on the state the laws around renting are a pain in the ass
Re: need some thoughts on a house
Posted: 16 Oct 2021, 07:40
by Methuselah Honeysuckle
The real question is do you feel like being a landlord?
Re: need some thoughts on a house
Posted: 16 Oct 2021, 08:57
by jawn galliano
how do you feel about directly exploiting people
Re: need some thoughts on a house
Posted: 16 Oct 2021, 09:21
by zim
is it just the general idea of being a landlord that you're against or do you think it'd be a mess not worth the time?
Re: need some thoughts on a house
Posted: 16 Oct 2021, 09:35
by Mesarthim
hope you're down to DIY all the repairs (and do them well) because otherwise maintenance will be a costly pain in the ass on the rental units.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 10:03
by agony bagony
buy a house without rental possibilities
do not buy a house with rental possibilities
Re: need some thoughts on a house
Posted: 16 Oct 2021, 10:30
by User
i would speak, but mabb has spoken
Re: need some thoughts on a house
Posted: 16 Oct 2021, 10:31
by zim
no one i've talked to thinks this is a good idea
guess i need to take the hint
Re: need some thoughts on a house
Posted: 16 Oct 2021, 10:34
by jawn galliano
zim wrote: ↑16 Oct 2021, 09:21
is it just the general idea of being a landlord that you're against or do you think it'd be a mess not worth the time?
both, but the honest truth and my primary objection is that becoming a landlord will make you evil. your intentions don't matter, it will happen.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 11:07
by droidspawn
Yeah 86 that biznitch
Re: need some thoughts on a house
Posted: 16 Oct 2021, 11:58
by User
zim just buy a nice cottage in the countryside, it's the zoom boom
Re: need some thoughts on a house
Posted: 16 Oct 2021, 13:56
by zim
User wrote: ↑16 Oct 2021, 11:58
zim just buy a nice cottage in the countryside, it's the zoom boom
everything is so expensive
the only reason i was considering this was the potential lower costs with having income from tenants
Re: need some thoughts on a house
Posted: 16 Oct 2021, 13:57
by zim
i likely won't move forward on this even though i was honestly pretty interested, i think if i had more money it would make more sense but i'd be kind of wiped out after the down payment so blah
the search continues
Re: need some thoughts on a house
Posted: 16 Oct 2021, 15:01
by User
Re: need some thoughts on a house
Posted: 16 Oct 2021, 15:42
by agony bagony
jawn galliano wrote: ↑16 Oct 2021, 10:34
zim wrote: ↑16 Oct 2021, 09:21
is it just the general idea of being a landlord that you're against or do you think it'd be a mess not worth the time?
both, but the honest truth and my primary objection is that becoming a landlord will make you evil. your intentions don't matter, it will happen.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 18:17
by Grudge
My criticism isn't that renting the house out will make you evil, but that it takes work and attention. Go for it if you have the willpower for that management.
How many rooms will the house have? 2 car garage? Lawn? Pool?
Re: need some thoughts on a house
Posted: 16 Oct 2021, 22:19
by Mesarthim
do the rental units in the basement have separate entrances? cause otherwise that would be like living with roommates
Re: need some thoughts on a house
Posted: 16 Oct 2021, 22:29
by zim
Mesarthim wrote: ↑16 Oct 2021, 22:19
do the rental units in the basement have separate entrances? cause otherwise that would be like living with roommates
yeah so the house is on an incline, you park behind it and the two units have their own entrances separate from the main house entrance.
you can see the two entrances on the ground level here
Re: need some thoughts on a house
Posted: 16 Oct 2021, 22:47
by zim
Grudge wrote: ↑16 Oct 2021, 18:17
My criticism isn't that renting the house out will make you evil, but that it takes work and attention. Go for it if you have the willpower for that management.
How many rooms will the house have? 2 car garage? Lawn? Pool?
4 bedrooms, decent yard with a shed that has power, great location for students
the problem lies with the rental units though, if i didn't have those occupied at all times i'd take on a bigger monthly bill, so that would always be a concern. i also don't know if i could justify renting either of those units out for more than 500 each, one is a studio while the other is a little bigger with a room, kitchen, living area. they are also both wired to have their own electric so they'd probably be responsible for paying that.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 23:23
by Noyka
Landlords aren’t inherently evil and tenants are not inherently the victims. You guys know this deep down. There is a difference between one room and a series of buildings. It is also different depending on who you rent to.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 23:50
by Mesarthim
looks like a decent enough house - I would definitely review any kind of local property laws as well as taxes before getting into it though. you'll have to be able to set some monies aside - not just for times when you don't have a tenant (I do believe you're allowed to claim that on your taxes - look it over though), but for maintenance as well - cause shit will break.
Re: need some thoughts on a house
Posted: 16 Oct 2021, 23:54
by Mesarthim
also, If you do decide to go forward with it - get a real estate / contract lawyer who can write up a rental agreement for you and have set policies and expectations (what the tenants are responsible for vs what you're responsible for) in place.
Re: need some thoughts on a house
Posted: 17 Oct 2021, 06:57
by zim
i actually got preapproved today for a loan but i don't think i'm going to move on this. initially it sounded like a good idea but i started to think about all the possible shitty scenarios of being a landlord and i don't think that's something i want to deal with as a first time home owner
Re: need some thoughts on a house
Posted: 17 Oct 2021, 08:14
by shadowalk
your first tenants will cook up meth while you sleep
Re: need some thoughts on a house
Posted: 17 Oct 2021, 08:21
by Noyka
Let their emotional support chihuahuas pee everywhere on top of the meth.
Re: need some thoughts on a house
Posted: 17 Oct 2021, 09:01
by User
nice bullet dodging zim, you the one
Re: need some thoughts on a house
Posted: 18 Oct 2021, 00:53
by Ninny
I know of two who do this. One is now super rich, for the other it was torture for 15 years but he is now doing okay. Extra work and stress
